Don't Tamper With UConn Foundation's Success

John Woike / Hartford Courant

John Woike / Hartford Courant

COLEMAN B. LEVY | OP-ED

Legislators risk harm to UConn Foundation

There's little argument among educators, policy makers and pundits that the number one issue facing higher education is affordability and accessibility. At many campuses the cost of a college degree is rising faster than a family's ability to pay for it. Students are taking on too much debt, with negative consequences for their lives and for society as a whole. The UConn Foundation is part of the solution, raising millions of dollars for scholarships — among other causes — and helping students graduate with less debt than their peers at other schools.

As chairman of the UConn Foundation, I want to work with our state lawmakers to strengthen the role philanthropy plays. One thing we must not do is make matters worse. Unfortunately, there are legislative proposals being considered right now that would do harm. The effort to "open the foundation's books" and treat it differently from every other non-profit foundation is misguided and risky.

First, changing the rules will undermine efforts to raise private dollars. Many donors simply won't give if they fear their personal information may become public. Under the current law, donors have confidence that their financial decisions will remain private. It has taken many years for the foundation to build trust with its donors, and those relationships are starting to pay dividends. Last year the foundation raised an all-time high of $80 million, completed a new $40 million basketball practice facility — funded completely with private dollars — and announced plans to upgrade the soccer complex. This year the foundation is launching a five-year student support initiative that aims to double the amount raised for scholarships and fellowships. Repealing the law that protects donor confidentiality would have a chilling effect on fundraising and result in less help for students.

The same is true for efforts to require publication or release of every foundation expenditure. Many donors, myself included, feel strongly that this represents the first step toward treating private gifts as taxpayer dollars and the foundation as a state agency. The foundation is not a part of government. It is a distinct, non-profit, tax-exempt corporation that saves Connecticut millions of dollars. And it is far from unique. Nationwide, organizations of this kind successfully support other public universities. Treating the foundation differently from other charitable organizations may convince many donors to put away their checkbooks and let taxpayers pick up the tab.

Some of those targeting the foundation argue that changes are needed to ward off malfeasance. It must be stated that there is already strong and transparent oversight. The foundation is governed by an independent volunteer board of directors, many of whom are alumni and respected business leaders. In addition, an independent audit is conducted annually and the report is made available to the public. The foundation files its financial documents with the IRS, posts them on its website, and releases an annual report with financial details. Furthermore, the foundation is subject to the enforcement authority of the Connecticut attorney general to protect charitable gifts. And state laws already exist to ensure that donations to the foundation don't influence the selection of state contracts. Legislative proposals being considered now are a solution in search of a problem.

Finally, protecting the foundation's independence helps ensure that a donor's gift is directed to the program or scholarship fund chosen by the donor, not an elected official or special interest. The foundation has a fiduciary responsibility to comply with donor intentions. Occasionally, this can generate criticism — Secretary of State Hillary Clinton's visit to campus is an example. Even so, the foundation is proud that it takes donor intent and accountability seriously.

Ultimately, I hope lawmakers reject risky proposals that discourage donors from giving and potentially place additional burdens on taxpayers and students. Let's work together to pass a state budget that invests in higher education and inspires UConn alumni and friends to become donors to our great state university.